Cp rate increase

tobyshitzu
Community Member

Canada post just announced .85 stamps will be .90 in January, 6+% increase.  No doubt other services will get that or more

Message 1 of 27
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Cp rate increase

And that will be for booklets of stamps again, I suppose?

Single stamps will be what $1.05 plus tax?

 

If you can stock up on the P stamps do so. They will remain as paying the first class domestic rate and can be used to make up parcel rates.

I don't often use tracked services, but my PO is quite content to add the barcode to my home-stamped parcels when I do.

 

And newbies should be reminded that whatever the published cost of parcel services, we get a discount on many of them when we buy Paypal labels.

Message 2 of 27
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Cp rate increase


@reallynicestamps wrote:
Single stamps will be what $1.05 plus tax?

Remain the same at $1.00 plus tax.

From the Canada Post PR posting:

 

Canada Post proposes to increase the postage rate for Domestic Lettermail items weighing 30 grams or less when purchased in a booklet, coil or pane to $0.90 from the current rate of $0.85. The price of a single stamp would remain $1.00. The rate change would take effect on January 11, 2016 and replace rates that will have been in effect for 21 months.

 

Canada Post estimates the average Canadian household purchases fewer than two stamps a month, while the typical small business purchases fewer than 250 stamps per year.

 

The current proposals [for 2016] will be published July 11, 2015.

 

Message 3 of 27
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Cp rate increase

"The current proposals [for 2016] will be published July 11, 2015."

 

July 11th is a Saturday!  Canada Post Head Office works on a Saturday! Smiley Happy

Message 4 of 27
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Cp rate increase


@reallynicestamps wrote:

And that will be for booklets of stamps again, I suppose?

Single stamps will be what $1.05 plus tax?

 

If you can stock up on the P stamps do so. They will remain as paying the first class domestic rate and can be used to make up parcel rates.

I don't often use tracked services, but my PO is quite content to add the barcode to my home-stamped parcels when I do.

 

And newbies should be reminded that whatever the published cost of parcel services, we get a discount on many of them when we buy Paypal labels.


Factor in the 33% drop in the loonie against the American dollar, and I am paying less for postage now than I was 2-3 years ago. Back then it cost me about $8 US, I deal only in US dollars, to mail a Small Packet, under 250 grams. Yesterday, that same Small Packet cost me $6.57 US.

 

Stamps! Yer good with math. Going from paying $8 to $6.57, is that an increase or a decrease, in cost to me, over the last couple years?

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Message 5 of 27
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Cp rate increase


@mr.elmwood wrote:

@reallynicestamps wrote:

And that will be for booklets of stamps again, I suppose?

Single stamps will be what $1.05 plus tax?

 

If you can stock up on the P stamps do so. They will remain as paying the first class domestic rate and can be used to make up parcel rates.

I don't often use tracked services, but my PO is quite content to add the barcode to my home-stamped parcels when I do.

 

And newbies should be reminded that whatever the published cost of parcel services, we get a discount on many of them when we buy Paypal labels.


Factor in the 33% drop in the loonie against the American dollar, and I am paying less for postage now than I was 2-3 years ago. Back then it cost me about $8 US, I deal only in US dollars, to mail a Small Packet, under 250 grams. Yesterday, that same Small Packet cost me $6.57 US.

 

Stamps! Yer good with math. Going from paying $8 to $6.57, is that an increase or a decrease, in cost to me, over the last couple years?


You are not paying less for postage. The Canada Post rate has risen for each year. You are paying more for postage than 3 years ago.

 

What you have done is kept the same flat rate for postage at $8 in US dollars and have benefited from the exchange rate difference.

 

So do not say you are paying less for postage, you are not. You are paying more than 2-3 years ago. You are now overcharging your buyers for postage compared to 2-3 years ago when the exchange rate was less and making money on the difference.

Message 6 of 27
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Cp rate increase

I only deal in US dollars. The exchange rate of $1 US to $1 US is what?

 

Three years ago I was paying $8 US to mail a Small Packet. Today I paid $6.59. In my world, out of my pocket, that is less.

 

I buy everything, sell everything, in US dollars.

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Message 7 of 27
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Cp rate increase

So when the CAN$ inevitably goes back up, you'll blame CP for rate increase that aren't happenning??

Message 8 of 27
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Cp rate increase

"when the CAN$ inevitably goes back up"

 

I think that is a long way out.  Mr Elmwood will be retired by then!

Message 9 of 27
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Cp rate increase

Stamps! Yer good with math. Going from paying $8 to $6.57, is that an increase or a decrease, in cost to me, over the last couple years?

 

Dunno. I'm actually dysnumeric, which is like dyslexic but with numbers.

Which is how I managed to sell $95 worth of mint postage last week for $15. Didn't notice a decimal point.

I've been flunking arithmetic since Grade Four-- when I was reading a university level.

 

So when I see numbers I either zone out or really look closely at them. With a pen and paper.

Message 10 of 27
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Cp rate increase


@mr.elmwood wrote:

Three years ago I was paying $8 US to mail a Small Packet. Today I paid $6.59. In my world, out of my pocket, that is less.

 

I buy everything, sell everything, in US dollars.


I think your math is good.   

 

Perhaps 'poco' may be thinking that by not lowering your US shipping rates to reflect what you're actually paying for your Canadian postage, you're over-charging your buyers.  I suppose there's an argument to be made that if the $8.00 US shipping your buyers pay is now only costing you $6.59 of your own US dollars, you should revise the shipping in your listings to $6.59.  

 

However, the problem with that approach is that it's a perpetual guessing game trying to match a US shipping quote to a continually fluctuating Canadian dollar.  It might also be more feasible if sales were more robust than they currently are.  In any case, if most of your buyers are in the U.S., leaving that $8.00 US shipping cost stand for 3 years without any increase is a bargain, i.e. the relative buying power for them of $8.00 US will have changed in 3 years (if you get my meaning).  

 

At least in my case, I'm trying to pass the exchange rate savings along to my buyers, either through shipping reductions or other means (such as more regular discount sales, accepting lower offers on 'Best Offer', upgrading to a higher shipping service at no charge to my buyers, offering free shipping on some items, etc.).   

 

For example, due to the $US/$Cdn exchange rate, I've been able to further reduce many of my (already "subsidized") shipping rates of a couple of years ago and still avoid losing money on shipping in most cases. Before the drop in the $Cdn, I was bleeding small bits of money everywhere trying to subsidize CP shipping costs for my buyers.  Now I'm happy to be able to continue doing that with very little pain on my end.   

 

I list in $US (including my shipping rates shown in listings), and I buy my CP Paypal labels with $US from my Paypal account.  So every time the $Cdn drops, I save a little more.  

 

In fact, as a result of the 2015 changes in Light Packet US break points for weights, I discovered with glee that many of my items were suddenly fitting into the "up to 200gm" category, for $5.00 Cdn, which meant only $4.00 U.S. for me (it's even less today).  I was actually refunding my buyers the excess US$1.00 as a gesture of goodwill, until I decided to lower my shipping rates even further on those items, to around $3.50.   

 

So yes, working in $US has had its benefits in negating the effects of CP's increases.  At this rate, if the $Cdn stays low, I won't have to worry about CP and its price hikes for some time.  As 'Mr. Elmwood' says, what was costing me pretty much the same in $US when the $Cdn dollar was at par is now about 20% cheaper with those same US dollars.  Some of that savings is helping a lot of us stay afloat I suspect. 

 

 

Message 11 of 27
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Cp rate increase

So the cycle of annual price increases once again starting up - after a one-third rise and a break of 21 months - is no biggie. Ain't life grand!?

 

Tom

 

Message 12 of 27
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Cp rate increase

I believe that Canada Post is required to get Parliamentary approval on price increases on the First Class LetterMail Rate - but only the lowest one-- and on one other, I think Registered Mail, as if anyone uses that anymore.

 

Which would put this announcement into the 'trial balloon' category since Parliament won't be sitting until November or December at the earliest with a whole new set of members.

 

And Prime Minister Mulcair may not be willing to allow it. Woman LOL

Spoiler
 
Message 13 of 27
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Cp rate increase

Parliament rarely approves CP increases before mid to late November or even into December.

 

Regardless, a 0 cent increase on a single stamp and a 5 cent increase on the commercial rate is certain to be approved no matter who is king of the castle after October 19th.

 

I believe Canada Post is required to file for any increase BEFORE July 1st for it to become effective the following January

 

 



"What else could I do? I had no trade so I became a peddler" - Lazarus Greenberg 1915
- answering Trolls is voluntary, my policy is not to participate.
Message 14 of 27
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Cp rate increase


@toff3 wrote:

So the cycle of annual price increases once again starting up - after a one-third rise and a break of 21 months - is no biggie. Ain't life grand!?

 


I'm certainly no fan of CP's rate hikes, but it just so happened this year that their re-shuffling of Light Packet US weight breaks gave me a reprieve for a year on a large portion of my items, and the slumping Canadian dollar added greatly to the cost relief across the board.  

 

Next year -- who knows?  CP increases plus a strong Canadian dollar could wipe out everything I've gained this year and then some.  I'm just grateful for small mercies at the moment.  

 

To be frank, I wish CP would just figure out what they want, set rates for 3 to 5 years and leave them so businesses who rely on them could do some forward planning.  Of course that would take creative thinking and organization on CP's part.  

Message 15 of 27
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Cp rate increase

Femme and Recped,

 

Tell me, how is life in La La Land? Do you honestly believe Canada Post is actually, in practice, subject to government regulations in respect of their operations? Do you really think Canada Post gives a toss? They do whatever they like and the government rubberstamps it. The government knows if it didn't, CP would simply say OK, then give us more money or we'll close up shop. In CP's blurb in the Canada Gazette of July 11, CP admit that "net losses are projected for three of the next five years, including 2015". So there'll be profits in the other two years, right? Yeah, sure - pull the other one, won't you.

 

Tom 

Message 16 of 27
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Cp rate increase


@rose-dee wrote:

I'm certainly no fan of CP's rate hikes, but it just so happened this year that their re-shuffling of Light Packet US weight breaks gave me a reprieve for a year on a large portion of my items, and the slumping Canadian dollar added greatly to the cost relief across the board.  

 

To be frank, I wish CP would just figure out what they want, set rates for 3 to 5 years and leave them so businesses who rely on them could do some forward planning.  Of course that would take creative thinking and organization on CP's part.  


Rose-dee,

You don't want to join Femme and Recped in La La Land, do you? You're wishing Canada Post would come up with a rational pricing scheme valid for the next few years so their customers could do some forward planning? That's a tall order if ever there was one. CP lurches from one financial crisis to the next practically year-to-year.

Rational pricing? Only an essentially unregulated government enterprise could get away with establishing a category such as Light Packet that's identical to Oversize Letter-post and then having the gall to set different rates for it and include it under Parcels(!).

 

Tom

Message 17 of 27
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Cp rate increase


@toff3 wrote:

Rose-dee,

You don't want to join Femme and Recped in La La Land, do you? 

_______________________________________________________________________________________

 

If I recall correctly, 'femme' just recently moved to La La Land*, which may account for it.  I fairly recently moved from La La Land, which may account for its effect on my perpetual wishful thinking.  

 

I don't know about 'recped'  -- I think he lives in The Big Reality City, doesn't he?  

 

 

* Victoria, B.C. 

 

Message 18 of 27
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Cp rate increase

Rose-dee,

 

Victoria, BC ain't La La Land, it's Lotus Land. But, never mind, good for Femme - it's a step up from Ennui-on-the-Rideau.

 

As for Recped, yes, I believe he resides in Hogtown ar at least the GTA.

 

Tom

Message 19 of 27
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Cp rate increase

I'm here in hogtown and I'm well aware that the approval process for a standard letter increase over and above the official pre-authorized amount (2/3 the rate of inflation or something like that) is a rubber stamp process.

 

For all other services they can set whatever prices they like and given they are not making any money they will push the boundaries as much as they can. It's the same situation all over the world, the only postal services that are making money are those that are greatly expanding their services (eg: financial services) and/or setting up international operations. Those types of actions are what is making SingPost, PostNord, B-Post & Deutsche Post profitable. They are not making it on domestic mail delivery.

 

 

 

 

 



"What else could I do? I had no trade so I became a peddler" - Lazarus Greenberg 1915
- answering Trolls is voluntary, my policy is not to participate.
Message 20 of 27
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